No action against Raju: Police

While stepping down from Satyam Computers, its chairman Ramalinga Raju admitted that there was financial fraud up to the tune of a whopping Rs.7,000 crore in the company. In all likelihood, with more and more reports of irregularities coming out Raju may well land up in jail in the days to come.

Raju admitted to the board members that he had tried to fill fictitious inflated cash balance of Rs 5,040 crore in the balance sheet. He said there was Rs. 588 crore artificial cash in Satyam books. A margin of a total Rs 649 crore was reported in the sheet while the actual figure is a meager Rs.61 crore.

Many statements Raju made in his confession letter are unimaginable and the shareholders and board members are appalled at the huge irregularities that took place in the company’s financial management.

The company reported inflated revenues over years leaving and understated liability of Rs.1,230 crore as of September 30, sources told media.

“Every attempt that had been made to eliminate the gap failed,” said Raju to in his letter to the board.

It is learnt that an accrued interest of Rs 376 crore in quarter 2 was non-existent.

Employees of Satyam are said to be scared to tackle clients. They are in absolute fear of job loss. It may be recalled that a total number of 120 employees had quit their jobs following the developments on Tuesday. More are expected to join the bandwagon.

Meanwhile, questions are being raised on corporate governance. Also, in the wake of huge fraud in Satyam, irregularities in many other software companies may see the light and this thought is sending shivers down the spine of shareholders and employees.

No action against Raju: Police

HYDERABAD: The Hyderabad police on Wednesday said it would not take any action for now against B Ramalinga Raju, the disgraced founder-chairman of Satyam Computer Services, who resigned after admitting massive financial fraud at India's fourth-largest software exporting company.

"We will not involve ourselves in the matter now," B Prasada Rao, Hyderabad's police commissioner told ET.

No complaint had yet been registered with the police against either Mr Raju or any other Satyam employee and there was no ground for any arrest to take place at this time, Mr Rao said.

"If a complaint is registered, we will act according to legal procedure. But it is too premature now."